PEDEVCO Corp. (PED), an oil and gas company, is trading at $1.16 in the premarket trading session at the time of the writing. On Thursday, PED surged 5.45% during the regular trading session and closed the day at $1.16. The surge could be attributed to the completion of drilling of two wells.
Why PED Surged?
On Thursday, PED announced the completion of the drilling of two new horizontal wells in the Permian Basin Asset. The lateral length of each of the wells is landing 100% in the target zone, which is upper San Andre’s zone. The first well, namely State 402H, had a TVD of 4,373 feet. The MD for the well was 5,286 feet. The second well, State 403H, had a TVD of 4,362 feet, while MD was 5,610 feet. The company intends to begin the completion of its operations in mid of January. It expects to start obtaining production from both the wells in mid of February 2022.
Q3 2021 Operational Results
In mid of November, PED released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The oil and gas production for the quarter was more than 700 barrels of oil equivalent per day. The revenue for the quarter stayed at $4.1 million against $2.4 million for the same period of 2020. The operating expenses for the three months were $4.4 million against $5.3 million for the same three-month period of 2020. The net loss suffered by the company during the period was $0.32 million against the net loss of $2.3 million for the same period of 2020.
Alongside the operational results, PED also released the financial results for the quarter. The adjusted EBITDA for the three months was $1.9 million, an increase of 129% when compared with $0.8 million for the same period of 2020. The company had cash of $23.2 million on the 30th of September 2021. Compared to that, on 30th June 2021, the cash in possession of the company was $22.6 million.
Future Outlook for PED
The last three months have seen PED stock declined approximately 40%. Analysts, however, are optimistic that the stock is in a good shape to attract potential investors in the coming months.